Overview• A UK based bank, but operates with 90% profit from Asia, Africa and

Middle East• Established after a merger of The Standard Bank and The Chartered

Bank in 1969• It has a primary listing on the London Stock Exchange and is a

constituent of the FTSE 100 Index• It had a market capitalisation of approximately £39.8 billion as of May

2015, the 13th-largest of any company with a primary listing on the London Stock Exchange

Products and Services• Corporate or business banking• Transaction banking• Financial markets• Corporate finance• Renminbi services• SME banking• Islamic banking

• Personal banking• Savings and accounts• Loans and mortgages• Credit cards• Insurance• Investments• Employee banking

• Private banking• Portfolio solutions• Investment solutions• Credit solutions• Islamic financial solutions• Trust and fiduciary services• Insurance• Partnership in philanthropy efforts of customers• Transaction services like domestic and foreign currency services, cheque and

draft facilities, offshore and onshore banking etc• Comprehensive range of credit and charge cards from Visa, MasterCard and

American Express• Online services• Information portal

Customer segmentation and targeting• Individual customers

• The main services are savings and account services, mortgages, credit cards etc• SMEs

• The most suitable services for the segment are cash management, trade finance and lending

• Corporate & Institutional customers• Large customers with extensive financial needs• Bank provides wholesale banking services i.e. clearing and collection services,

liquidity management, treasury, advisory services• Islamic customers

• this group uses financial services in line with Islamic law (Shariah)• Thus the bank provides financial services that are in conformity with Shariah (SCB)

Customer segmentation and targeting• The segmentation enables the bank to understand each segment's

needs, thus design the most appropriate marketing mix for each

segment

• This enables them to target the customers with appropriate

marketing mix for each segment

Positioning• Next step after segmentation and targeting• It states how the company wants the customers to perceive its brand

and product (Ennew and Waite, 2007)• The bank has high quality of service in comparison with its competing

international financial institutions, but at the same time has low accessibility

The 7Ps of service marketing mix• Product

• The bank provides a wide range of consumer banking services which is divided into 3 components: wealth management, retail products and SME products

• The well known brand name in consumer banking in the main countries where the bank operates has been affirmed by prominent accolades granted by international organizations e.g. the Best Retail bank of the year in Singapore (Asia Banking and Finance Award 2009) (SCB, 2009)

• Price• The bank makes attempts to provide optimal payment solutions to the customers by applying

advanced payment systems, reducing processing time, eliminating manual tasks

• In 2009 the bank adopted Employee Banking Program (EBP), offering competitive pricing of banking services to the employees of corporate clients, which has delivered impressive results of 600 clients of wholesale banking and 3,750 SME clients registered for EBP

• Promotion• Allied with hotels and travel corporations throughout the footprint regions like IHG

hotels etc to offer a lot of promotion programs for the Standard Chartered Visa card

• Place• Bank’s organizational structure has 2 main units- consumer banking unit and

wholesale banking unit• The consumer banking unit serves 14 million individual customers via nearly 1,700

branches and 5,679 ATMs in Hong Kong, Singapore and Malaysia

• People• The bank has over 77,300 employees of whom only 2,000 are UK based• To manage and maintain staff efficiency, the bank adopted an online system which

allows each employee to update their annual objectives, thus managers and employees can easily agree and supervise performance just at a click

• There are many training programs offered to emerging leaders within the organization

• Physical Evidence• The bank has a strong presence with nearly 1700 branches worldwide• All the branch buildings and transactions materials like check books,

statements... are well designed with the green and blue logo, thus make the clients bear in mind the brand image of the bank

• Process• In consumer banking, a Consumer Charter is adopted to deliver fast and

accurate service, provide best solutions to clients' financial needs, and the final goal is to be the bank customers recommend to their friends and colleagues

Relationship marketing• The bank genuinely commits to building relationships with

stakeholders e.g. customers, employees, shareholders• It is making a thrust toward the modern concepts of customer

relationship management• Employees are provided with a good working environment, chances

of promotion and rewarding system

SWOT Analysis• Strengths• The key difference between Standard Chartered and the rest of the UK banks

is its focus on emerging markets

• Weaknesses• Absence of a strong investment banking offering• It is increasingly possible that Standard could begin to lose business to banks

with a stronger reputation for providing investment banking services worldwide

• Opportunities• Standard Chartered recently reported 16% income growth and 10% profit

growth in Africa• Of all the world’s major banks, Standard Chartered is probably the best-

positioned to benefit from the economic growth that the continent is experiencing

• Threats• If the returns of HSBC and Barclays invest resources in Standard Chartered’s

strongest markets, margins could suffer

Overall marketing strategy at a glance• Its consumer banking marketing strategy is comprehensive with synergic solutions• Striking strengths can be seen at an extensive network, brand image and financial

capacity• But considering the current internal and external issues that it faces, it should

focus on corporate governance, especially in risk management• One of the key issues is to provide the right mix of financial services by the right

channels to the right segments of clients• It should apply a more detailed pricing strategy and keep competitive pricing in

simple services• Further, it should assure the quality and reputation in more complicated financial

services

• Instead of direct promotion methods via phone, email which are annoying to customers, more subtle method should be applied e.g. giving a little information initially, just like a teaser attached to a bank statement, thus stimulating the curiosity of clients• In 2008 the consumer banking arm of the bank started a

transformation from product-focused to customer-focused strategy with the application of the Customer Charter• In the second half of 2009 the bank launched the Priority Banking

Program which rewards customers based on their total transaction volume across products like savings account, mortgages• More attractive bundles of products are designed to best suit

customers' needs• To support SME customers, the bank employed additional 700

relationship managers in 2009